While science and property development might seem like odd bedfellows at first, a chat with Mr. Lim Peng Jin, the Managing Director of Scientex Berhad, proved otherwise. We unraveled the yarn of how this manufacturer entered the property scene through its landmark Taman Scientex in Pasir Gudang all the way to its present status as a much sought-after developer in both Johor and Malacca.

iProperty: Could you let us in on how Scientex started and its background?
Mr. Lim (Scientex): We began as a manufacturer of Polyvinyl chloride (PVC) leather cloth and sheeting in 1968. Since then, thanks to our capable management team, not only have we celebrated more than 40 years of success but more importantly, we have grown into the strong entity that we are today with two core businesses: manufacturing operations and property development. We were listed on the Main Board of Bursa Malaysia in 1990.

Besides our local base, we are also established in Vietnam, where we produce automotive carpet mats, woven bags and raffia for the export market. I’m glad to say that Scientex has grown so much and we are one of the world’s top 10 producers of stretch film today. We began stretch film production in 1997 with only one production line but today it has grown to nine cast extrusion machines with a combined annual production capacity of 120,000MT. In addition to stretch film, our manufacturing sector also churns out automotive interior products, carton boxes, rigid film, woven bags, blown film & adhesives, raffia and PP strapping bands.

Meanwhile, our property development arm is a reputable and reliable property developer in Johor and Malacca with our residential and commercial projects receiving tremendous interest and support from the locals. We entered the scene in 1993 via a partnership with LKN Development Pte. Ltd. to develop 328 acres of residential and commercial property at Taman Scientex, Pasir Gudang, Johor. Through the years, Scientex, through its wholly owned subsidiary, Scientex Quatari Sdn Bhd, which was established in 2004, gradually converted the agriculture land bank in Pasir Gudang, Johor for development.

Our flagship Taman Scientex Pasir Gudang is now a self-contained township with more than 6,500 residences and commercial units built to date and upon completion, will host approximately 14,000 units of homes and commercial units with its strategic and close proximity to the Pasir Gudang Industrial Zone and the Johor Port.

Building on this, we expanded our land bank with the acquisition of 250 acres of land in Kulai in 2007. Our first product was launched in 2008. In the following year, in 2009, Scientex acquired 136 acres of prime land in Ayer Keroh, Malacca, which is currently being developed into commercial and higher-end residences.

Returning to Johor, our first foray into the high-end property market was through our acquisition of 146 acres of prime development land in Skudai at the end of January 2010. This land bank is close to both the Second Link to Singapore and the Iskandar region. Our latest project, known as Taman Mutiara Mas, Skudai, launched its first phase of shop office lots in May 2010. Following its overwhelming success, we have launched subsequent phases with high take-up rates.

iP: Tell us more about Taman Mutiara Mas.
SB: With the new land bank in Skudai, Scientex has achieved another milestone of breaking into the high-end development scene. Taman Mutiara Mas which will be developed in phases over the 146 acres of prime land, will comprise of 1,995 units of mixed-use high-end homes and commercial units. We also plan to bring sustainable living to Johor by creating an eco-friendly ‘green’ township in Taman Mutiara Mas.

The first phase of residences, ‘Sapphire’ 2 storey cluster homes (phase S2), was launched in September 2010. As a result of its strategic location and practical design, there was an overwhelming response rate at the launch and the take up rate is currently at 90% out of the total 128 units. The same thing happened at the launch of ‘Emerald’, 76 units of 2-storey terrace homes (phase S3), in November 2010 with 60 out of the 76 units sold within a month
from the launch.
For the commercial side, ‘1 Mutiara Mas’, the 3-storey shop offices (phase S1), completely sold out its international lots within a day. With prices appreciating over 45% in the past year, we decided to launch another 57 units of the 3-storey shop offices, ‘1 Signature’, in September 2011.

iP: What can we expect from Scientex for the coming year?
SB: For this year, we have invested over RM7 million to upgrade the whole development, including The Mound@Scientex, a show village provided to the public for a glimpse into the future of Taman Mutiara Mas. The coming financial year is shaping up to be even more exciting as Taman Mutiara Mas is set to double its sales from the previous year propelled by the new launches of 232 units of double-storey cluster homes ‘Opal’ and 57 units of 3-storey shops ‘1 Signature’. We also look forward to the key handover and delivery of vacant possessions to 73 shop owners and 204 home owners for the earlier launched phases of
S1, S2 and S3.

The commercial development is an excellent investment opportunity with its prime location and ready catchment from the vibrant residential areas that are home to primarily professionals and business owners with high purchasing power. The modern and minimalist faade of the 3-storey shophouses makes it flexible for the creation of lifestyle brand outlets while the two multi-storey car parks puts convenience at the palm of the hands of both business owners and customers alike.

iP: Are there special features about Taman Mutiara Mas that is of particular note?
SB: Taman Mutiara Mas is set to embody the ‘Natural Living in the Heart of the City’ concept based on the allocation of a good proportion of greenery to build a natural environment. In line with our concept lifestyle emphasizing on natural living, we have developed three different themes relating to the environment that will see aesthetically and tastefully-designed homes blending in with the natural environment, namely The Canal (Water), The Woods (Forest) and The Mound (Earth). We are firm believers of sustainable development with the provision of eco-friendly features and a 3.8-acre ‘green’ park for public use, encouraging a healthy lifestyle for all.

Opal, located in the Canal-themed Precinct, is the epitome of basking in the wonder of nature with its low-density and caring community. This phase is unique as it is the first in Johor to offer a 22-feet full-frontage glass panel faade. The large glass windows with seven sliding doors allow natural light and ventilation into the interiors and engage energy efficient design with the overall focus on natural lifestyles. This includes a bathroom with a skylight and separate bathrooms for privacy. The ground floor’s open-space design works with faade for greater access to the garden. In perfect alignment with the Canal concept, a recreational park for residents to live a community-centric lifestyle with tracks for cycling, jogging, exercising and the like has been created.

iP: In terms of land bank acquisition, will Scientex be setting their sights on new areas this coming year?
SB: In light of the continuing increase in demand for the Johor property market, we are always looking for quality land parcels in strategic locations that can be converted into premier properties.

iP: How do you foresee the property market outlook for the second half of 2011?
SB: We note that the prices of residential properties in Johor have increased by 10% in the second half of last year, with a projected increase of 5-10% in the coming six months. Commercial and industrial properties have recorded even higher price increases between 20-30% as market demand has risen for those properties. Something of note is that projects by reputable developers who deliver high-quality offerings in a timely manner in the past are more likely to be favourably viewed by prospective buyers.

Iskandar continues to be a market driver for properties in the southernmost region of Johor, particularly in the high-end residential market. The completion of infrastructure such as the New Coastal Highway, Eastern Dispersal Link Expressway and the Senai-Pasir Gudang-Desaru Expressway in the next one or two years will increase connectivity in the area and the Government’s planned infrastructure initiatives such as the intra-city commuter rail service will enhance Iskandar Malaysia’s feasibility in the long-term.

Scientex’s good mix of affordable housing as well as high-end luxury properties puts us in good stead for penetration into diverse segments. This strategy not only caters to the various segments of the market but also enables the fulfillment of various needs, economic or property market cycles regardless.

Our comprehensive knowledge of operating in two locations, Johor and Malacca, gives us the advantage of localized knowledge to foster close rapport with the community and strengthen our reputation as a responsible, progressive and trustworthy property developer of choice.

iP: Are there plans to move overseas in the future?
SB: At this stage we are still focused on the local market in order to strengthen our position.
However we would not rule out the possibility of overseas expansion.

iP: What sort of appreciation can investors expect from Taman Mutiara Mas?
SB: We have put in place some strategies which will enhance the property value of the development which include an enhanced product range
in the development that focuses primarily on
luxury properties within the township and the enhancement of high product quality.

Over the past one year, our commercial units (S1’s 3-storey shop office) has seen an increase of 45% in value while our residential properties such as S2’s cluster homes have gone up by 40% and S3’s 2 1/2-Storey terrace homes by 25% over a 12-month period.

iP: In terms of percentage, how much does the property development sector contribute to your overall annual revenue? Will it continue to grow in the coming years?
SB: For our financial year-ended 31st July 2011, the property development division has contributed about 28% of Scientex’s total revenue. Our property development division which consists of Scientex Pasir Gudang, Scientex Kulai, Scientex Melaka as well as Scientex Skudai has brought in higher sales figures, chalking up an impressive 46% growth in revenue to RM 219 million as compared to the RM150 million recorded in the same time frame last year.